PanAmerican Consulting, a debt settlement provider, is facing a class action lawsuit for allegedly misleading consumers and worsening their financial conditions.
The suit was filed by Victoria Wolworth, identified as a resident of Illinois, on behalf of herself and others in similar situations. The case accuses the company of violating the Illinois Consumer Fraud and Deceptive Business Practices Act (ICFA) and the Illinois Debt Settlement Consumer Protection Act (DSCPA).
The complaint alleges that PanAmerican Consulting, which operates nationally including in Illinois, targets consumers in significant debt with promises to improve their financial situation. However, these promises often result in consumers being left deeper in debt than when they started.
The DSCPA requires debt settlement companies operating in Illinois to be licensed and abide by certain provisions, such as a 15% cap on payment for settled debt. It also prohibits false and deceptive communications by these companies. Violations of the DSCPA are considered violations of the ICFA.
The lawsuit claims that PanAmerican Consulting has violated numerous provisions of both acts, causing significant harm to Wolworth and other members of the class action.
The plaintiffs seek to expand the action to include all PanAmerican clients in Illinois in the past three years.
The case was filed on March 20 in Cook County Circuit Court.
Plaintiffs are seeking unspecified damages, including compensatory, statutory, actual, nominal and punitive damages.
Plaintiffs are represented by attorneys Seth McCormick, of Great Lakes Consumer Law Firm, of Chicago; and Bryan Paul Thompson and Robert W. Harrer, of the Chicago Consumer Law Center, of Lisle.